RBA Itching to Hike; Timing a Judgment Call

The Reserve Bank of Australia’s October meeting minutes clearly spell out that policy makers are itching to tighten rates, the only question is when.

The central bank says its decision to stand pat this month was “finely balanced” and it can’t wait “indefinitely” to see whether risks on the global stage materialize before hiking.

The clear message from the minutes is that new information before the bank’s November meeting, with third quarter consumer price index data due Oct. 27, could be enough to push it over the line.

Also of note are comments on the Australian dollar’s strength, which the bank says will help contain inflation. Little is new there, but it does illustrate that the RBA is comfortable with the Aussie dollar’s ongoing strength.

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